JG Summit in talks for sale of petrochem unit

MANILA, Philippines —  Multiple companies are in discussions with the Gokongwei Group’s JG Summit Holdings Inc. for the potential sale of its Batangas petrochemical plant.

JG Summit president and CEO Lance Gokongwei told The STAR that the group is in talks with multiple potential buyers of the mothballed asset.

He said the parties are predominantly international firms.

Gokongwei, however, said there is no set timeline as to when a deal would be completed.

The tycoon noted that they are still evaluating several options to determine the best use of the Batangas complex.

Gokongwei earlier indicated that the group has begun discussions with potential buyers of the Batangas petrochemical plant, which was placed on an indefinite shutdown for at least two years in 2025.

In an interview with The STAR last year, Gokongwei said JG Summit would explore options “which include the full sale of the business, or a joint venture, or at least preserving it for at least two years, hoping that the cycle will turn around at some point.”

For potential buyers of the group’s petrochemical business, if it goes on sale, he previously said it should be someone looking at the Philippines as a manufacturing base for Southeast Asia.

JG Summit’s board in November last year approved the management’s plan to pursue various paths to monetize JG Summit Olefins Corp. (JGSOC)’s assets and, consequently, write down the carrying value of the assets to their recoverable amount, resulting in an impairment loss estimated at P114.3 billion.

JGSOC announced an indefinite commercial shutdown in January 2025 due to unfavorable market conditions in the global petrochemical industry.

By May of the same year, JGSOC’s board approved a prolonged shutdown of the company for at least two years due to persistent market challenges in the global petrochemical industry.

During the shutdown period, JGSOC will focus on preserving its assets and evaluating its strategic options.

The process likewise includes implementing manpower rationalization in accordance with all applicable laws and regulations, as well as JG Summit’s assumption of the company’s rights and obligations under its outstanding loan agreements.

JGSOC said it remains focused on prudent financial management throughout the shutdown, implementing tighter budget controls, streamlining operational support and prioritizing essential expenditures.

“The company is evaluating all strategic options while ensuring the plant’s readiness for future operations,” it said.